DEERFIELD BEACH, Fla., Sept. 12 /PRNewswire-FirstCall/ -- China Direct, Inc. (Nasdaq: CDS), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced that its Board of Directors has approved a $2.5 million stock repurchase program.

On September 10, 2008, the Board of Directors authorized the Company to repurchase up to $2.5 million shares of its common stock through March 31, 2009. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors deemed appropriate by the Company's CEO and President. Repurchases may be in open-market transactions or through privately negotiated transactions, and the repurchase program may be discontinued or expanded by the Board of Directors at any time. The Company has approximately 23.5 million shares of common stock outstanding and approximately 12.5 million shares are in the public float as of today. Any shares repurchased by the Company in this program will reduce the number of outstanding shares of its common stock.

'The board's decision to authorize the repurchase of our common stock underscores our confidence in China Direct's financial strength and our ability to enhance long-term shareholder value. Our business outlook remains strong,' said Dr. James Wang, CEO of China Direct.

Dr. Wang concluded, 'We believe that our current financial model and operating requirements will allow us to execute this program as we make the necessary investments in our business to ensure our future growth. Our cash resources, after the repurchase, will be adequate to allow us to continue pursuing our objectives.'

About China Direct, Inc.

China Direct, Inc. (Nasdaq: CDS) is a diversified management and advisory services organization headquartered in the U.S. Our management services division acquires a controlling interest in entities operating in China. Our ownership control enables China Direct to provide management advice, as well as financing to Chinese entities. This infrastructure creates a platform to expand business opportunities globally while accessing the U.S. capital markets. Our advisory services division provides comprehensive advisory and consulting services to Chinese entities seeking to access the U.S. capital markets. As a direct link to China, China Direct serves as a vehicle allowing investors to directly participate in the rapid growth of the Chinese economy in a diversified and balanced manner.